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GP centre shelved due to poorly property market
Anna Davis2 Jan 2009
A MAJOR new health centre in London has been postponed due to the economic downturn.
Developers pulled out of building the eight-GP centre over fears they would face difficulty in selling the private homes also planned for the site.
The organisation behind the scheme is now trying to find new developers. The project is already six months behind schedule.
The Healthy Living Centre in New Cross Gate would have included a GP surgery, gym, pharmacy and crèche. Developer the Rydon Group was due to have included 172 private houses to help pay for it.
A spokesman for Rydon Group said: "It was the economics which didn't work out, because of the loss in value of land. The whole scheme was part-funded by the private sales.
"We pulled out of this with regret. We went into it with great hope but unfortunately the market circumstances have made it impossible."
The Healthy Living Centre is a crucial part of a £45million government-backed scheme to regenerate New Cross Gate.
Matt Parsonage, programme manager for the New Cross Gate New Deal for Communities, which is behind the project, said: "Rydon Group decided to walk away because of everything that is going on with the credit crunch. They thought it was not feasible in terms of finance."
He said the private housing aspect of the scheme may be changed into student accommodation or a hotel, and new developers would be asked to come forward.
Mr Parsonage said: "It looks like private housing will not be the answer to cross-subsidise the community side of the scheme. There is a big demand for more student accommodation - we are very close to Goldsmiths College."
The site in New Cross Gate was originally social housing, which was demolished to make way for the Healthy Living Centre.
Mr Parsonage said: "It is all ready to go. We are hoping if we get a developer on board we will see work start late this year. We have slipped six months. If this hadn't happened we would have seen work start early this year."
It comes after senior health service figures warned the NHS was facing its biggest financial challenge for more than a decade. They said the current surplus in England would not protect the health service fully.
Former health secretary Stephen Dorrell said: "Recessions are not good for people's health. If the recession we face is on the scale that I fear then we should expect that there will be a substantial long-term rise in demand on the healthcare system as a result of the effects on health of poverty, stress and depression."
Former health secretary Patricia Hewitt said: "We know that along with unemployment comes an increase in depression, stress and other mental health problems."
Reader views (1)
New Cross Gate NDC have shortlisted seven developers to be interviewed later this month. Some developers are very keen and we are hopeful that a revised scheme can be devisied and the project back on track as soon as possible. This project is at the heart of the community aspirations for the area and has great local support. We are determined to deliver the improved environment and services this project will be able to provide.
Clive Wilson Chief Executive New Cross Gate NDC
- Clive Wilson, New Cross Gate England, 05/01/2009 16:25
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